The Dubai Financial Services Authority (DFSA) has urged global regulators to begin joint talks to prevent exploiting gaps in regulatory rules for digital assets. As reported by Bloomberg.
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DFSA chief Elizabeth Wallace noted that the authority plans to update the local cryptocurrency legislation, presented in early 2022.
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“As regulators, we need to talk to each other more about digital assets, because there can be quite a few gaps, and we have seen many unscrupulous players trying to exploit some of these oversights,” she said.
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Wallace said the regulator is concerned about many crypto firms that conduct a substantial amount of activity under one roof.
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Dubai authorities see potential in digital assets and are looking to support the sector. Previously, licenses to provide cryptocurrency services in the emirate were granted to Bitcoin exchanges Huobi, OKX, Blockchain.com, Crypto.com and Binance.
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In February, the head of the latter, Changpeng Zhao, called on entrepreneurs to consider relocating to countries with more favourable regulation. Among them he named Dubai, Bahrain and France.
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As noted in August 2022, the Dubai Virtual Asset Regulatory Authority (VARA) published new rules governing the advertising and promotion of cryptocurrencies.
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Earlier VARA announced the opening of its office in the metaverse project The Sandbox.